KB Home's Fire-Resilient Community: A Game-Changer in Southern California Real Estate

In the wake of the devastating wildfires that ravaged the Los Angeles area earlier this year, kb home has stepped up to the plate with an innovative solution: a "wildfire-resilient" community in Escondido, just outside San Diego. This development, which will eventually comprise 64 single-family homes, is the first of its kind to meet the rigorous wildfire resilience standards set by the Insurance Institute for Business & Home Safety (IBHS). These standards are designed to protect homes against the three major sources of ignition during a wildfire: flying embers, flames, and radiant heat.



The homes in this community are built with a range of fire-resistant features, including covered gutters, enclosed eaves, noncombustible siding like stucco and fiber cement, tempered-glass windows, and non-combustible patios, doors, and roofing. Additionally, the homes have a six-inch vertical clearance using a concrete foundation, stucco, and stone, and incorporate defensible space with low-combustible vegetation at least five feet from the homes. Metal fencing is used throughout the neighborhood to further reduce the risk of fire spread.

Steve Ruffner, regional general manager of KB Home's coastal division, noted that the company saw a fire-resistant home demonstration by IBHS at the Pacific Coast Builders Conference last summer and were impressed by the opportunity this type of community presented. Since KB Home had already broken ground on the development, they had to change gears quickly to incorporate the fire-resilient components. "We had to change the architecture on the fly to a more stucco-oriented architecture with fire-resistant shutters, or fire-free shutters and doors and tempered windows. We were able to do that really quickly with the city, because they wanted to work with us. They really understood that this was important for their city," Ruffner said.

The homes in this community range from $1 million to the low millions, which tends to be a move-up price in that area for single-family, detached homes. KB Home is trying to get the cost to a reasonable place, because they really specialize in first-time buyers and first-time move-up buyers. So they want to make sure they can get this in a good place where it's affordable to do it and it's also got a good payback to the customer in a form of safety.

As climate change causes more severe drought in more areas of the country, focus is shifting to fire-resistant homes and communities. During the Palisades Fire in January, some homes that had been specifically built to fire-resistant standards remained unscathed while everything around them was destroyed. These types of homes, however, are largely one-offs by custom builders. There has been progress in California on a home-by-home basis, according to IBHS, but KB Home is the first big production builder in the country that has designed and is fully building out 64 homes all to meet the wildfire-prepared neighborhood standard. Among the specifications, homes are spaced 10 feet apart to help slow the progression of a fire.

Roy Wright, CEO of IBHS, emphasized that part of the draw is not just to build a home that is survivable, but also one that is insurable. Insurance companies have been pulling out of California in droves, leaving homeowners with soaring costs and some without insurance entirely. Though the homes are billed as fire-resilient, that doesn't mean they are entirely risk-free. Homeowners and cities are going to have to make changes when it comes to non-combustible landscaping, elevations, and even design. The real test will come in the future, should the community be in the line of a wildfire. "Nothing is ever fireproof. We're always just seeking to try to narrow those paths of destruction," said Wright.

The implications for future real estate investments in fire-prone areas are significant. As wildfires become more frequent and severe, there is an increasing demand for fire-resilient homes. KB Home's development in Escondido is a test bed for this type of community, and its success could pave the way for similar developments in other fire-prone areas. This could lead to a shift in the real estate market, with fire-resilient homes becoming a more attractive investment option. As Roy Wright, CEO of IBHS, noted, "I know that KB Home already has two other projects here in Escondido, looking at duplexes and other kinds of town homes, and I do imagine that other builders are going to quickly follow suit. They're going to be building the homes that Californians want to buy."

Furthermore, the development of fire-resilient communities could also have implications for insurance costs. As insurance companies pull out of fire-prone areas due to the increased risk, homeowners are left with soaring costs and some without insurance entirely. Fire-resilient homes, however, are more likely to be insurable, which could make them a more attractive investment option. As Wright emphasized, "Part of the draw is not just to build a home that is survivable, but also one that is insurable."

In conclusion, KB Home's fire-resilient community in Escondido is a groundbreaking development that aligns with the broader trend of increasing wildfire risks due to climate change. The community's design incorporates a range of fire-resistant features, and its success could pave the way for similar developments in other fire-prone areas. As the demand for fire-resilient homes continues to grow, KB Home's initiative could lead to increased market share and long-term growth and profitability for the company.

Ask Aime: What impact will KB Home's wildfire-resilient community have on future real estate investments in fire-prone areas?